State Bank of India (SBI), LIC and other public sector banks have invested generously in the Adani Group as a result of which the country’s financial system may face risks. While LIC has invested heavily in the Adani Group, several state-owned banks have extended large loans to the group. In total, thousands of crores of government money is involved in Gautam Adani’s companies. In such a situation, while the Adani Group’s dealings are being questioned, concerns are being expressed about the savings of crores of Indians in financial institutions like SBI and LIC.
Investment by LIC
LIC, the country’s largest institutional investor in the Adani group, invests heavily in listed companies on the stock market. In the last two years, LIC has increased its investment in Adani group companies rapidly and has increased investment in four of the 7 listed companies of the Adani group.
LIC alone accounts for 98.9 percent of the total investment by insurance companies in Adani group companies. LIC’s investment in Adani Group was Rs 81,268 crore on January 24, which fell to Rs 62,621 crore by January 27. In this way, in just a few days, the people of the country lost about 18 thousand 647 crore rupees.
Government banks have also invested money
According to a report by market research firm CLSA, banks account for less than 40 percent of Adani Group’s total loan amount. It is noteworthy that the Adani Group has recorded an increase in funding from banks over the past few years. In the last three to four years, the funds of banks in the top 5 companies of the group have increased from Rs 1 lakh crore to Rs 4 lakh crore.
The Adani group held about 86% of banks’ funding five years ago, which has now fallen below 40 percent, CLSA added in the report. In this, the funding of private banks has increased from 31 percent to 8 percent, while the funding of government banks has decreased from 55 percent to 25 percent. Still this amount is a few thousand crore rupees.